- The American Bankers Association said OCC stablecoin rules weaken Congress’ intended limits on yield.
- The OCC removed a proposed presumption covering some third-party arrangements tied to yield payments.
- The final GENIUS Act rules were issued ahead of implementation in January 2027.
US banking groups are pushing back on the Office of the Comptroller of the Currency’s final rules for payment stablecoin issuance and custody, with much of the criticism centered on stablecoin yield. In a Wednesday notice, the American Bankers Association said the regulator took some positive steps in implementing the GENIUS Act, but argued that changes tied to yield restrictions conflicted with Congress’ intent. The debate comes after lawmakers and interest groups spent months arguing over rewards and related arrangements before and after the GENIUS Act passed Congress in July 2025. The OCC finalized the rules ahead of the law’s implementation in January 2027, while other agencies are also expected to issue related rules.
Banking groups object to stablecoin yield changes
The American Bankers Association said the OCC’s final rule removed protections that had appeared in the proposal stage. According to the group, the regulator dropped a provision that would have created a presumption that certain third-party arrangements violated the law’s ban on yield payments. ABA said that change left room for issuers to provide the economic equivalent of yield while still avoiding the statutory prohibition.
The banking group also said the OCC chose not to adopt a broader presumption against arrangements designed to get around the ban. ABA argued that these gaps could blur the line Congress intended to draw between payment stablecoins and traditional bank deposits. In its view, that distinction matters because deposits support the funds banks use to make loans in the US economy.
OCC rule changes and the stablecoin yield dispute
The final OCC rules cover payment stablecoin issuance and custody under the GENIUS Act framework. While the American Bankers Association acknowledged that the finalized rules included several positive steps, its main objection focused on how the agency handled stablecoin yield and related third-party structures involving affiliates, exchanges and other distribution partners.
The Bank Policy Institute largely backed ABA’s criticism. It said the decision to remove the yield presumption replaced clarity with ambiguity and created risks for the banking system and customers through possible deposit flight. That response shows that concern over the final language extends beyond one trade group and remains centered on how the law will be applied in practice.
Different industry reactions to the final rules
Not every industry group agreed with the banking sector’s position. The Blockchain Association supported the change to the yield prohibition, saying the OCC brought the final rule more closely in line with the statutory text. That contrast highlights a split between banking advocates and another crypto industry organization over how strictly the law should be read.
The disagreement comes as stablecoin rewards remain under scrutiny in Washington. The issue was one of the main points debated before and after the GENIUS Act passed Congress in July 2025. It is also still part of broader discussion around the Digital Asset Market Clarity Act, which is currently in limbo after a failed procedure vote in the Senate last month.
What comes next for stablecoin yield rules
The OCC finalized its rules before the GENIUS Act takes effect in January 2027. More rulemaking is still expected from other government departments connected to stablecoin oversight. The Federal Reserve and Treasury are among the agencies expected to release GENIUS-related rules that fall within their own areas of authority.
That means the current dispute over stablecoin yield may not be the last policy fight tied to the law. For now, the OCC’s final approach has drawn support from the Blockchain Association and criticism from the American Bankers Association and the Bank Policy Institute, leaving an active debate over whether the rules reflect Congress’ original intent.
Conclusion
The fight over stablecoin yield has become a central point in the response to the OCC’s final GENIUS Act rules. The American Bankers Association said the regulator weakened safeguards by dropping a proposed presumption on certain third-party arrangements and by not adopting a broader anti-circumvention standard. The Bank Policy Institute echoed those concerns, while the Blockchain Association said the final text better matched the statute. With the law set for implementation in January 2027 and additional rules still expected from the Federal Reserve and Treasury, stablecoin yield remains a contested issue in how US agencies apply the new stablecoin framework.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
Featured image created by AI
